why does entry of payment/receive/and contra

Question

Accepted Answer

Entry of payment/receive/contra is important for accurate financial record keeping.

Helps in tracking and managing cash flow
Ensures accurate financial reporting
Allows for reconciliation of accounts
Helps in identifying discrepancies or errors in transactions

Accepted Answer

In accounting, "payment," "receipt," and "contra" entries are used to record different types of financial transactions, with "contra" specifically referring to entries where money is transferred between a company's cash and bank accounts, essentially just moving funds from one place to another within the business, without impacting the overall financial position; hence, all three are often mentioned together as they represent the primary ways to record money coming in or going out of a company. 
Key points about each entry:
Payment Entry:
This is used when a company pays money to someone else, like a vendor or supplier. 
Receipt Entry:
This is used when a company receives money from someone else, like a customer making a payment. 
Contra Entry:
This is used when there is a transfer of funds between the company's cash account and bank account, like depositing a check into the bank or withdrawing cash from the bank.

Accepted Answer

when i purchase goods without payment and i payment after 2 day then payment entry will payment voucher in accounting software

why does entry of payment/receive/and contra

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